Forex - US dollar, euro easier vs yen in Singapore afternoon trade |
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Published
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Fri, 19 Jan 2007 09:06
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SINGAPORE (XFN-ASIA) - The dollar and the euro were both softer against the yen in afternoon trading here, but look poised to make further headway against the Japanese currency in the near term, dealers said.At 3.16 pm here (0716 GMT), the dollar was at 121.27 yen, down from 121.37 yen in Sydney exactly four hours earlier. The euro was at 157.46 yen, down from 157.52 yen in Sydney and at 1.2984 usd, up from 1.2979 usd.In the US overnight, the dollar had risen to 121.60 yen, a level last seen in March 2003.The yen has been unattractive since yesterday, when the Bank of Japan's policy board voted 6-3 to keep interest rates on hold, amid perceptions that it bowed to government pressure in doing so, dealers said.DBS said in a currency market note: 'That said, we are sympathetic to the Bank of Japan, as the central bank was probably a victim of political posturing ahead of the upper house elections this summer.'It added: 'Given the difficult political environment, the split vote is probably the Bank of Japan's way to communicate to the market its intention on the timing of its next rate hike.'Dealers said the action in the market today suggested that while the Bank of Japan's decision was largely yen-negative in the short-term, there were still expectations that it would raise interest rates in February and that this meant the yen might be spared a long-term downtrend.United Overseas Bank said in a forex market note: 'In line with the consensus, we expect the Bank of Japan to increase the target overnight call rate to 0.5 pct at the Feb. 20-21 meeting.'Singapore 3.16 pm (0716 GMT) Sydney 2.16 pm (0316 GMT)US dollaryen 121.27 down from 121.37sfr 1.2466 up from 1.2464Eurousd 1.2984 up from 1.2979yen 157.46 down from 157.52sfr 1.6187 up from 1.6179stg 0.6576 up from 0.6572Sterlingusd 1.9742 down from 1.9749yen 239.43 down from 239.67sfr 2.4610 down from 2.4616Australian dollarusd 0.7892 up from 0.7887stg 0.3997 up from 0.3993yen 95.74 unchangedsingapore@xfn.com
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Forex - US dollar weaker vs yen, euro in Singapore afternoon trade 